IDEAS home Printed from https://ideas.repec.org/a/eee/intman/v19y2013i2p176-194.html
   My bibliography  Save this article

Heterogeneous firm response to organized crime: Evidence from FDI in Mexico

Author

Listed:
  • Ramos, Miguel A.
  • Ashby, Nathan J.

Abstract

We thank Editor Massaki Kotabe and two anonymous reviewers for their comments and suggestions. In addition, we appreciate helpful feedback on earlier versions of this paper from Myles Shaver, Jennifer Oetzel, Adam Fremeth, anonymous reviewers for the 2011 31st Strategic Management Society Annual International Conference and conference participants. Jorge Delgado and Avilia Bueno provided valuable assistance with data collection.

Suggested Citation

  • Ramos, Miguel A. & Ashby, Nathan J., 2013. "Heterogeneous firm response to organized crime: Evidence from FDI in Mexico," Journal of International Management, Elsevier, vol. 19(2), pages 176-194.
    • Handle: RePEc:eee:intman:v:19:y:2013:i:2:p:176-194
    DOI: 10.1016/j.intman.2013.01.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1075425313000045
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intman.2013.01.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kotabe, Masaaki, 2005. "Global security risks and international competitiveness," Journal of International Management, Elsevier, vol. 11(4), pages 453-455, December.
    2. Head, Keith & Ries, John & Swenson, Deborah, 1995. "Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States," Journal of International Economics, Elsevier, vol. 38(3-4), pages 223-247, May.
    3. Guy L. F. Holburn & Bennet A. Zelner, 2010. "Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry," Strategic Management Journal, Wiley Blackwell, vol. 31(12), pages 1290-1315, December.
    4. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    5. Czinkota, Michael R. & Knight, Gary A. & Liesch, Peter W. & Steen, John, 2005. "Positioning terrorism in management and marketing: Research propositions," Journal of International Management, Elsevier, vol. 11(4), pages 581-604, December.
    6. Mayer, Thierry & Zignago, Soledad, 2006. "Notes on CEPII’s distances measures," MPRA Paper 26469, University Library of Munich, Germany.
    7. Daniele, Vittorio & Marani, Ugo, 2011. "Organized crime, the quality of local institutions and FDI in Italy: A panel data analysis," European Journal of Political Economy, Elsevier, vol. 27(1), pages 132-142, March.
    8. René Belderbos & Jianglei Zou, 2007. "On the growth of foreign affiliates: multinational plant networks, joint ventures, and flexibility," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1095-1112, December.
    9. Jennifer Oetzel & Kathleen Getz, 2012. "Why and how might firms respond strategically to violent conflict?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(2), pages 166-186, February.
    10. Perez, M. Fabricio & Brada, Josef C. & Drabek, Zdenek, 2012. "Illicit money flows as motives for FDI," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 108-126.
    11. Gregory J. Brock, 1998. "Foreign direct investment in Russia's regions 1993‐95. Why so little and where has it gone?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(2), pages 349-360, November.
    12. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
    13. Oana Branzei & Samer Abdelnour, 2010. "Another day, another dollar: Enterprise resilience under terrorism in developing countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 804-825, June.
    14. Peri Giovanni, 2004. "Socio-Cultural Variables and Economic Success: Evidence from Italian Provinces 1951-1991," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-36, September.
    15. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
    16. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    17. Chander Kant, 2002. "What is Capital Flight?," The World Economy, Wiley Blackwell, vol. 25(3), pages 341-358, March.
    18. Spich, Robert & Grosse, Robert, 2005. "How does homeland security affect U.S. firms' international competitiveness?," Journal of International Management, Elsevier, vol. 11(4), pages 457-478, December.
    19. Witold J Henisz, 2003. "The power of the Buckley and Casson thesis: the ability to manage institutional idiosyncrasies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(2), pages 173-184, March.
    20. Stergios Skaperdas, 2001. "The political economy of organized crime: providing protection when the state does not," Economics of Governance, Springer, vol. 2(3), pages 173-202, November.
    21. Sergio Mariotti & Lucia Piscitello, 1995. "Information Costs and Location of FDIs within the Host Country: Empirical Evidence from Italy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 815-841, December.
    22. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    23. Klaus E. Meyer & Hung Vo Nguyen, 2005. "Foreign Investment Strategies and Sub‐national Institutions in Emerging Markets: Evidence from Vietnam," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 63-93, January.
    24. Witold J Henisz & Edward D Mansfield & Mary Ann Von Glinow, 2010. "Conflict, security, and political risk: International business in challenging times," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 759-764, June.
    25. Alcantara, Lailani Laynesa & Mitsuhashi, Hitoshi, 2012. "Make-or-Break Decisions in Choosing Foreign Direct Investment Locations," Journal of International Management, Elsevier, vol. 18(4), pages 335-351.
    26. Simon Rottenberg, 1973. "The Economics of Crime and Punishment," Books, American Enterprise Institute, number 920506, September.
    27. A Delios & W J Henisz, 2003. "Policy uncertainty and the sequence of entry by Japanese firms, 1980–1998," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(3), pages 227-241, May.
    28. Alvaro Cuervo-Cazurra, 2006. "Who cares about corruption?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 807-822, November.
    29. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995.
    30. John G. Matsusaka, 2009. "Direct Democracy and Public Employees," American Economic Review, American Economic Association, vol. 99(5), pages 2227-2246, December.
    31. Michael R Czinkota & Gary Knight & Peter W Liesch & John Steen, 2010. "Terrorism and international business: A research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(5), pages 826-843, June.
    32. Barnes, Paul & Oloruntoba, Richard, 2005. "Assurance of security in maritime supply chains: Conceptual issues of vulnerability and crisis management," Journal of International Management, Elsevier, vol. 11(4), pages 519-540, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hutzschenreuter, Thomas & Matt, Tanja & Kleindienst, Ingo, 2020. "Going subnational: A literature review and research agenda," Journal of World Business, Elsevier, vol. 55(4).
    2. Caroline T Witte & Martijn J Burger & Elena I Ianchovichina & Enrico Pennings, 2017. "Dodging bullets: The heterogeneous effect of political violence on greenfield FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 862-892, September.
    3. René Cabral & André Varella Mollick & Eduardo Saucedo, 2019. "Foreign Direct Investment In Mexico, Crime, And Economic Forces," Contemporary Economic Policy, Western Economic Association International, vol. 37(1), pages 68-85, January.
    4. Peter J Buckley & Liang Chen & L Jeremy Clegg & Hinrich Voss, 2018. "Risk propensity in the foreign direct investment location decision of emerging multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(2), pages 153-171, February.
    5. Jiménez, Alfredo & Boehe, Dirk, 2018. "How do political and market exposure nurture ambidexterity?," Journal of Business Research, Elsevier, vol. 89(C), pages 67-76.
    6. Adán Jacinto Flores Flores & Maritza Álvarez Herrera & Francisco García Fernández, 2017. "Factores determinantes de la localización del sector eléctrico-electrónico en México," Nóesis. Revista de Ciencias Sociales y Humanidades, Nóesis. Revista de Ciencias Sociales y Humanidades, vol. 26, pages 20-44, 51.
    7. Yoo, Dasun & Reimann, Felix, 2017. "Internationalization of Developing Country Firms into Developed Countries: The Role of Host Country Knowledge-Based Assets and IPR Protection in FDI Location Choice," Journal of International Management, Elsevier, vol. 23(3), pages 242-254.
    8. Cabral Torres René & Mollick André V. & Saucedo Eduardo, 2018. "The Impact of Crime and Other Economic Forces on Mexico's Foreign Direct Investment Inflows," Working Papers 2018-24, Banco de México.
    9. Xu, Kai & Hitt, Michael A. & Brock, David & Pisano, Vincenzo & Huang, Lulu S.R., 2021. "Country institutional environments and international strategy: A review and analysis of the research," Journal of International Management, Elsevier, vol. 27(1).
    10. Donnelly, Róisín & Manolova, Tatiana S., 2020. "Foreign location decisions through an institutional lens: A systematic review and future research agenda," International Business Review, Elsevier, vol. 29(4).
    11. Schmidt, Heiko M. & Santamaria-Alvarez, Sandra Milena, 2022. "Routines in International Business: A semi-systematic review of the concept," Journal of International Management, Elsevier, vol. 28(2).
    12. Jürgen Harrer & Andreas Wald, 2016. "Levers of enterprise security control: a study on the use, measurement and value contribution," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 27(1), pages 7-32, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ashby, Nathan J. & Ramos, Miguel A., 2013. "Foreign direct investment and industry response to organized crime: The Mexican case," European Journal of Political Economy, Elsevier, vol. 30(C), pages 80-91.
    2. Ms. Concha Verdugo Yepes & Mr. Peter L. Pedroni & Xingwei Hu, 2015. "Crime and the Economy in Mexican States: Heterogeneous Panel Estimates (1993-2012)," IMF Working Papers 2015/121, International Monetary Fund.
    3. Jiménez, Alfredo & Lupton, Nathaniel C., 2021. "Terrorism hazard and infrastructure projects: The moderating role of home experience and institutions," Journal of Business Research, Elsevier, vol. 135(C), pages 721-730.
    4. Cuervo-Cazurra, Alvaro, 2016. "Multilatinas as sources of new research insights: The learning and escape drivers of international expansion," Journal of Business Research, Elsevier, vol. 69(6), pages 1963-1972.
    5. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    6. Gamso, Jonas & Nelson, Roy C., 2019. "Does partnering with the World Bank shield investors from political risks in less developed countries?," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    7. Dimitrova, Anna & Triki, Dora & Valentino, Alfredo, 2022. "The effects of business- and non-business-targeting terrorism on FDI to the MENA region: The moderating role of political regime," International Business Review, Elsevier, vol. 31(6).
    8. Lee, Hyoungjin & Park, Junmin & Chung, Chris Changwha, 2022. "CEO compensation, governance structure, and foreign direct investment in conflict-prone countries," International Business Review, Elsevier, vol. 31(6).
    9. Bebonchu Atems & John K Mullen, 2016. "Outward FDI from the USA and host country financial transparency," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(8), pages 1122-1143, November.
    10. Caroline T Witte & Martijn J Burger & Elena I Ianchovichina & Enrico Pennings, 2017. "Dodging bullets: The heterogeneous effect of political violence on greenfield FDI," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(7), pages 862-892, September.
    11. Goel, Sanjay & Cagle, Seth & Shawky, Hany, 2017. "How vulnerable are international financial markets to terrorism? An empirical study based on terrorist incidents worldwide," Journal of Financial Stability, Elsevier, vol. 33(C), pages 120-132.
    12. Yang, Jie, 2018. "Subnational Institutions and Location Choice of Emerging Market Firms," Journal of International Management, Elsevier, vol. 24(4), pages 317-332.
    13. Bader, Benjamin & Berg, Nicola, 2013. "An Empirical Investigation of Terrorism-induced Stress on Expatriate Attitudes and Performance," Journal of International Management, Elsevier, vol. 19(2), pages 163-175.
    14. Lee, Hyoungjin & Chung, Chris Changwha, 2022. "Go small or go home: Operational exposure to violent conflicts and foreign subsidiary exit," Journal of World Business, Elsevier, vol. 57(6).
    15. Oh, Chang Hoon & Shin, Jiyoung & Oetzel, Jennifer, 2021. "How does experience change firms' foreign investment decisions to non-market events?," Journal of International Management, Elsevier, vol. 27(1).
    16. Kui Ming Tiong & Ming Yu Cheng & Chee Keong Choong, 2021. "Investment climate and foreign direct investment in Malaysia: firm‐level evidence," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 108-119, May.
    17. Jiang, Guoliang F. & Holburn, Guy L.F. & Beamish, Paul W., 2014. "The Impact of Vicarious Experience on Foreign Location Strategy," Journal of International Management, Elsevier, vol. 20(3), pages 345-358.
    18. Alfredo Jiménez & Juan Fuente & Juan Durán, 2011. "Is There an East-West Structure in the Location of FDI in Europe? The Role of Institutions and Political Risk," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 3(1).
    19. Jiménez, Alfredo & Luis-Rico, Isabel & Benito-Osorio, Diana, 2014. "The influence of political risk on the scope of internationalization of regulated companies: Insights from a Spanish sample," Journal of World Business, Elsevier, vol. 49(3), pages 301-311.
    20. Fernández-Méndez, Laura & García-Canal, Esteban & Guillén, Mauro F., 2018. "Domestic political connections and international expansion: It's not only ‘who you know’ that matters," Journal of World Business, Elsevier, vol. 53(5), pages 695-711.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:19:y:2013:i:2:p:176-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.